Overview of Incentive Compensation

Use the Manage Incentive Compensation business process activities to effectively link participant performance to earnings. The delivered activities are secured so that specific incentive compensation job roles can perform tasks within each activity.

The following figure shows the high-level flow of the main Manage Incentive Compensation business activities by incentive compensation job role.

1. The plan administrator plans the compensation strategy and creates incentive plans.
2. The compensation manager configures credit and rollup rules for the plan and assigns plans to participants.
3. The compensation analyst does these actions:
   1. Collects data on participant performance and applicable transactions.
   2. Credits participants.
   3. Calculates earnings for participants.
   4. Determines payments to participants.
   5. Manages any disputes about compensation.
4. The participant accepts compensation plans and monitors performance and results.

Incentive Compensation Plan Administrator

Plan administrators use the Compensation Plans work area to create and manage compensation plans, classification rules, and credit categories.

Incentive Compensation Manager

Compensation managers use the Participant Assignment work area to do these actions:

• Manage date-effective rules to determine who receives credit for each business transaction and how much credit to allocate.

• Manage and assign incentive payment plans and roles.

• Assign participants to analysts and balance analyst workload.

In the Credits and Earnings work area, compensation managers submit and monitor transaction processes:

• Collect, adjust, hold, and maintain transactions as well as collect performance data

• Credit participants

• Calculate earnings

In the Payments work area, compensation managers create and approve payment batches as well as submit and monitor transaction processes:

• Determine payments and adjustments

• Export payment data

Incentive Compensation Analyst

Compensation analysts perform many of the same tasks as the compensation manager, but don't have permission to make assignments or create or pay payment batches. In addition, analysts use the Participant Snapshot work area to do these actions:

• Manage participant details

• Individualize participant compensation and payment plans

Analysts use the Credits and Earnings and Participant Snapshot work areas to research and resolve incentive disputes.

Incentive Compensation Participant and Incentive Compensation Participant Manager

Participants and participant managers use dashboards and reports in the Sales Compensation work area:

• Review and accept incentive plans

• Monitor personal performance data

• Monitor team performance data (participant managers only)

• Review incentive earnings and payments

• Create incentive disputes

Incentive Compensation Application Administrator

The application administrator maintains incentive compensation business units and objects, such as calendars, currency, and table attributes in the Setup and Maintenance work area:

• Offering: Sales

• Functional Area: Incentives